A pallet is a flat platform for stacking and moving goods, or a rough bed; a palette is a painter's mixing board, or the range of colours in a piece of work. Picture the artist's palette ending in that extra E, the same E that starts "extra colours".
The core difference
A pallet is a physical platform (or rough bed); a palette is about colour.
- pallet — a flat platform for stacking goods, or a makeshift bed: the forklift lifted the pallet onto the truck.
- palette — a painter's mixing board, or a range of colours: the mural uses a bright, tropical palette.
How to tell them apart
Both words trace back to the same idea of a small flat board, which is exactly why they get confused. Palette kept that link to painting and colour, while pallet branched off into warehouses and makeshift beds. If you can swap in the word "colours" and the sentence still makes sense, you want palette; if you're talking about forklifts, shipping, or a hard bed of straw, you want pallet.
The spelling difference is the final letter: palette ends in an extra e, just like the word "colour" it so often follows, while pallet ends flat, with no trailing e, much like the flat platform it names. The mix-up turns up most often in design and marketing copy, where writers mean "colour palette" but type "colour pallet" by habit, and in warehouse or logistics writing where the reverse slip happens.